Answered: ABC LTD has a defined benefit pension…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 3RE: Pinecone Company has plan assets of 500,000 at the beginning of the current year and expects to earn...

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Similar questions

Pinecone Company has plan assets of 500,000 at the beginning of the current year and expects to earn 12% on its plan assets during the year. Pinecones service cost is 230,000, and its interest cost is 55,000. Compute Pine-cones pension expense for the current year.
FS LTD. has a defined benefit pension plan. As at 31 December 2018, its plan assets had a book value of Shs. 140 million and a fair value of Shs. 160 million. The PBO at the time was Shs. 150 million. During the year, the company contributed an amount of Shs. 20 million to the fund, the fund paid out Shs. 15 million while the return on plan assets was Shs. 10 million. Service costs were Shs. 30 million, interest cost amounted to Shs. 12 million while actuarial gains were Shs. 3 million.Required:I) Fair value of plan assets as at 31 December 2019. ii) The projected plan obligation as at 31 December 2019.
At the end of the current period, Oxford Ltd. has a defined benefit obligation of $195,000 and pension plan assets with a fair value of $110,000. The amount of the vested benefits for the plan is $105,000. What amount related to its pension plan will be reported on the company’s statement of financial position?(a) $5,000. (c) $85,000.(b) $90,000. (d) $20,000
At the end of the current period, Oxford Ltd. has a defined benefit obligation of $195,000 and pension plan assets with a fair value of $110,000. The amount of the vested benefits for the plan is $105,000. What amount related to its pension plan will be reported on the company's statement of financial position? a. $5,000. b. $90,000. c. $85,000. d. $20,000.
Babcock Company received the following reports of its defined benefit pension plan for the current calendar year: PBO Plan assets Balance, January 1 $ 600,000 Balance, January 1 $ 500,000 Service cost 360,000 Actual return 50,000 Interest cost 64,000 Annual contribution 220,000 Benefits paid (90,000) Benefits paid (90,000) Balance, December 31 $ 934,000 Balance, December 31 $ 680,000 The long-term expected rate of return on plan assets is 8%. Assuming no other data are relevant, what is the pension expense for the year?
For 2017, Carson Majors Inc. had pension expense of $77 million and contributed $55 million to the pension fund. Which of the following is the journal entry that Carson Majors would make to record pension expense and funding?(a) Pension Expense 77,000,000Pension Asset/Liability 22,000,000Cash 55,000,000 (b) Pension Expense 77,000,000Pension Asset/Liability 22,000,000Cash 99,000,000 (c) Pension Expense 55,000,000Pension Asset/Liability 22,000,000Cash 77,000,000 (d) Pension Expense 22,000,000Pension Asset/Liability 55,000,000Cash 77,000,000
At the end of the current period, Agler Inc. had a projected benefit obligation of $400,000 and pension plan assets (at fair value) of $350,000. What are the accounts and amounts that will be reported on the company's balance sheet as pension assets or pension liabilities?
U.S. Metallurgical Incorporated reported the following balances in its financial statements and disclosure notes at December 31, 2023. Plan assets $ 420,000 Projected benefit obligation 350,000 U.S.M.’s actuary determined that 2024 service cost is $62,000. Both the expected and actual rate of return on plan assets are 10%. The interest (discount) rate is 4%. U.S.M. contributed $122,000 to the pension fund at the end of 2024, and retirees were paid $46,000 from plan assets. Required: What is the pension expense at the end of 2024? What is the projected benefit obligation at the end of 2024? What is the plan assets balance at the end of 2024? What is the net pension asset or net pension liability at the end of 2024? Prepare journal entries to record the (a) pension expense, (b) funding of plan assets, and (c) retiree benefit payments.
The accountant for Marlin Corporation has developed the following information for the company's defined-benefit pension plan for 2018: Service cost $1,000,000 Actual return on plan assets 500,000 Annual contribution to the plan 1,840,000 Amortization of prior service cost 250,000 Benefits paid to retirees 120,000 Settlement rate 10% Expected rate of return on plan assets 8% The accumulated benefit obligation at December 31, 2018, amounted to $6,500,000.…
Cahal-Mitchell Company received the following reports for its defined benefit pension plan for 2022: PBO Plan assets Balance, January 1 $ 470,000 Balance, January 1 $ 259,000 Service cost 194,000 Actual return 38,000 Interest cost 36,000 Annual contribution 117,000 Benefits paid (80,000 ) Benefits paid (80,000 ) Balance, December 31 $ 620,000 Balance, December 31 $ 334,000 The long-term expected rate of return on plan assets is 10%. Assuming no other data is relevant, what is the pension expense for 2022?
The accountant for Marlin Corporation has developed the following information for the company's defined-benefit pension plan for 2021: Service cost $2,000,000 Actual return on plan assets 1,100,000 Annual contribution to the plan 820,000 Prior service cost from pension plan amendment in 2019: 2,500,000 Benefits paid to retirees 550,000 Average remaining service life of employees 10 years Interest rate 10% Expected rate of return on plan assets 12% Plan Asset, beginning balance $10,000,000 PBO, beginning balance $9,000,000 The accumulated benefit obligation at December 31, 2021, amounted to…
The accountant for Marlin Corporation has developed the following information for the company's defined-benefit pension plan for 2021: Service cost $2,000,000 Actual return on plan assets 1,100,000 Annual contribution to the plan 820,000 Prior service cost from pension plan amendment in 2019: 2,500,000 Benefits paid to retirees 550,000 Average remaining service life of employees 10 years Interest rate 10% Expected rate of return on plan assets 12% Plan Asset, beginning balance $10,000,000 PBO, beginning balance $9,000,000 The accumulated benefit obligation at December 31, 2021, amounted to…

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